Bursa down 1.72% on rating downgrades and revised earnings

KUALA LUMPUR (Oct. 30): Shares of Bursa Malaysia Bhd plunged 1.72% today, after Affin Hwang Capital Research lowered the stock to "Maintain" at 7.55 RM with a lower price target of RMB 7.65 (from RM 8.40) Bursa's net profit for the 3Q18 and 9M18 amounts to RM 50.2 million (-2.7% over one year) and to RM 172.2 million (+ 2.6% over one year).

At 9:10, Bursa fell from 13 Sen to 7.42 RM with 87,600 shares traded.

In a note today, the research firm said that overall, the results of 9 M18 were below expectations of home and market.

According to the report, the weaker sentiment of stock markets in 3Q18 resulted in a 12.7% drop in the value of total transactions and a decrease of -14.1%. / t in terms of average daily value (ADV).

"For 9M18, the contribution of the securities market to operating income (+ 5.5% year-on-year) remained the main factor (90% of the group), while profits on derivatives fell by 6.1%. % over one year.

"We are revising our earnings guidance of -7.3% / -9.4% / -10% for 2018E / 19E / 20E, taking into account a lower AD assumption of RM 2.5 billion in the equity market. .

"Downgrading to buy, with a revised price target of RM 7.65 (at a target of 27 x P / E)," he said.